It should come as no surprise that most conversations in the banking industry these days are focused on how the industry needs to innovate. The search for innovative banking solutions concentrates on new channel strategies, partnering with Fintech industries, reinventing the branch experience, and exploring AI to deepen the personalization of services.
However, none of these solutions address the fundamental issue in banking: the relevancy of the business model. Financial institutions need to rethink the fundamentals of the industry and how it will create value for customers well into the future. As technology commoditizes more of what drives financial institutions, making it harder to grow margin, banks need to answer the question: “What business are we now in?”
This paper will explore potential answers to the fundamental business model question with supporting rationale for each.